| Tue 14 Sep 2010, 14:00 | | COM - Comair Limited - Audited Abridged Group results for the year ended 30 June |
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COM
COM
COM - Comair Limited - Audited Abridged Group results for the year ended 30 June
2010 and cash dividend declaration
Comair Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1967/006783/06
ISIN Code: ZAE000029823 Share Code: COM
("Comair" or the "Group" or "the Company")
AUDITED ABRIDGED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2010 AND
CASH DIVIDEND DECLARATION
Earnings review
We are proud of our team having achieved its 65th straight year of operating
profits which we believe to be a world record in the airline industry. Turnover
remained similar to last year, with higher volumes on our British Airways and
kulula brands, offset by lower average fares. While the 21% increase in earnings
per share was encouraging, our operating profit margin remains too low at just
under 5%. A margin of 10% is achievable and necessary if we are to realise our
growth objectives. Major cost variables, being fuel and the rand dollar
exchange rate, were stable during the year. Cash generated from operations
remained strong at R247 million with our cash balance increasing to R374 million
at year end.
The continued success of Comair is a tribute to our 1,941 great staff who once
again delivered exceptional service to our customers. We will continue to
build on the talents and skills of our people going forward and invest
significantly in the training, development and well being of our excellent
team.
The Boeing 737-800 is now established around the world as the leading aircraft
for short haul and low cost operators. During the year we placed an order for
eight new 737-800`s for future delivery and took delivery of two on long-term
leases. The performance of these aircraft has been exceptional, with low fuel
consumption, negligible technical delays, and an overall improved experience for
our customers.
During the year we extended our kulula capacity substantially, mostly out of
Lanseria airport. Our plan to continue growing our low cost Lanseria base so
that we can achieve critical mass and even greater efficiencies once the planned
new high capacity runway is in place. During the year we obtained the rights to
fly to several new African destinations and will be commencing services to
Maputo, Mozambique and Dar es Salaam, Tanzania, in the next few months.
Our affiliate businesses performed well over the period. Our travel business,
which includes kulula travel and MTBeds, is showing great potential. Our flight
training business is growing strongly and after year end we commenced with the
installation of our third flight simulator, for Boeing 737-800 type training.
Commuter Handling Services and Imperial Air Cargo, in which we have minority
stakes, both reported small losses during the year.
Looking ahead
Our industry is very sensitive to business activity levels and economic growth
rates in South Africa, and we have only seen a very moderate recovery from the
2009 recession. We therefore don`t anticipate much growth in the market but do
anticipate continuing growth in market share, based on the strength of our
brands and our competitive pricing.
The past year was very significant in that for the first time since start up,
we placed an order for brand new aircraft. The eight 737-800s, that were
ordered from the Boeing Company, will further enhance our high efficiency, low
cost business model and will set the standard for the industry in Southern
Africa, while maintaining Comair`s leadership position. The R2 billion order
will increase our gearing, but together with our other efficiency initiatives,
position us for a much stronger profit performance in the future.
Dividends
The directors have resolved to declare a cash dividend (Dividend number 11) of
5 cents per share (prior year: 5 cents) to all shareholders. The last day to
trade (cum the dividend) in order to participate in the dividend will be Friday
8th October 2010. The shares will commence trading "ex" dividend from the
commencement of business on Monday 11th October 2010 and the record date is
Friday 15th October 2010. Share certificates may not be de-materialised or
re-materialised between Monday 11th October 2010 and Friday 15th October 2010,
both days included. The dividend payment will be made on Monday 18th October
2010.
Directors` resignation and appointment
(a) Erik Rudolf Venter resigned as Financial Director of the Company on
15th September 2009. He retains his position as joint CEO.
(b) Ranil Yasas Sri-Chandana was appointed as Financial Director on
15th September 2009.
(c) Rajesh Ramanlal Mehta resigned as a Non-executive Director on
31st July 2010.
Annual General Meeting
The Annual General Meeting of shareholders of Comair will be held at its
operations building on 29th October 2010 at 12h00.
Basis of preparation
In terms of the Listing Requirements of the JSE Limited, the Group has prepared
its consolidated financial statements in accordance with International Financial
Reporting Standards including IAS 34 Interim Financial Reporting, the AC 500
standards as issued by the Accounting Standards Board and the requirements of
the
Companies Act. The accounting policies used in the preparation of these results
are consistent in all material aspects with those used for the prior comparative
period.
Abridged Group Statement of Comprehensive Income
Audited Audited
year year
30 June 30 June
2010 2009
R `000 R `000
----------------------------
Revenue 3,009,544 3,048,782
Operating expenses (2,723,009) (2,814,209)
----------------------------
Operating profit before depreciation 286,535 234,573
Depreciation (142,542) (105,874)
----------------------------
Profit from operations 143,993 128,699
Investment income 32,751 34,033
Interest expense (45,859) (49,138)
Share of profit (loss) of associates (6,814) 170
----------------------------
Profit before taxation 124,071 113,764
Taxation (34,364) (40,715)
----------------------------
Profit after tax attributable to the
equity holders of the parent 89,707 73,049
Other comprehensive income
Fair value adjustment on cash flow hedge
net of taxation 17,640 (18,193)
----------------------------
Total comprehensive income for the year
attributable to the equity holders of
the parent 107,347 54,856
----------------------------
Earnings per share (cents) 22.0 18.2
Headline earnings per share (cents) 22.0 19.6
Diluted earnings per share (cents) 21.8 18.0
Diluted headline earnings per share (cents) 21.8 19.4
Dividends per share 5.0 -
Weighted ordinary shares in issue (`000) 408,295 400,814
Diluted weighted ordinary shares in issue (`000) 412,327 405,873
Depreciation (R `000) 142,542 105,874
Reconciliation between earnings and
headline earnings
Profit after taxation attributable to the
equity holders of the parent 89,707 73,049
Add: IAS 16 loss on disposal of property,
plant and equipment - 5,608
----------------------------
Headline earnings after tax 89.707 78,657
----------------------------
Abridged Group Statement of Financial Position
ASSETS
Property, plant and equipment 991,853 912,043
Investment in associates 75,887 73,637
Available-for-sale-investments 153,000 131,580
Current assets 801,833 583,526
----------------------------
2,022,573 1,700,786
----------------------------
EQUITY AND LIABILITIES
Share capital and reserve 725,275 517,722
Interest-bearing liabilities 188,976 360,582
Deferred taxation 78,463 68,310
Current liabilities 1,029,859 754,172
----------------------------
2,022,573 1,700,786
----------------------------
Net asset value per share (cents) 154.1 129.1
Audited Audited
year year
30 June 30 June
2010 2009
R `000 R `000
Abridged Group Statement of Cash Flows
Cash and cash equivalents at the beginning
of the period 309,220 125,004
Cash from operations and investment income 247,107 363,629
Dividends paid (20,040) -
Taxation received (paid) 1,258 (13,288)
Cash utilised in investing activities (136,858) (195,549)
cash (utilised)/generated from financing (26,410) 29,424
----------------------------
Cash and cash equivalents at the end
of the period 374,277 309,220
----------------------------
Abridged Group Segment Report
Segmental revenue
Airline 2,978,411 3,021,830
Non-airline 31,133 26,952
----------------------------
3,009,544 3,048,782
----------------------------
Segmental results
Airline 272,834 217,392
Non-airline 13,701 17,181
----------------------------
Profit before taxation and depreciation 286,535 234,573
Depreciation - Airline (142,139) (105,422)
Depreciation - Non-airline (403) (452)
----------------------------
Profit before interest, dividend and taxation 143,993 128,699
----------------------------
Abridged Group Statement of Changes in Equity
Opening balance 517,722 459,942
Rights issue 115,978 -
Total comprehensive income for the period 107,347 54,856
Dividends paid (20,040) -
Equity settled sharebased payment adjustment 3,428 3,428
Net effect of share trust activities 840 (504)
----------------------------
Closing Balance 725,275 517,722
----------------------------
Audit Opinion
These financial statements have been audited by PKF (Jhb) Inc. and their
unqualified audit report is available for inspection at the registered office of
the company.
By order of the Board
Mr. D Novick (Chairman) Mr. G Novick (Joint CEO) Mr. E Venter (Joint CEO)
13 September 2010
Sponsor
RAND MERCHANT BANK (A division of First Rand Bank Limited)
Date: 14/09/2010 14:00:01 Produced by the JSE SENS Department.
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